Ahead of the IMF talks starting from today, the Pakistani rupee showed someresilience and brought down the US dollar by Rs4.63 in the interbanktrading on Tuesday.
According to money dealers, the Pakistani rupee made a recovery aftersuffering an initial loss when the US dollar hit Rs270 barrier during earlytrading today. But soon the local unit made a comeback and the Americancurrency was sunk by Rs4.63 making US dollar to be traded at Rs265.
During last 7 working days, the exchange rate of US dollar pinnacled toRs269 from Rs229.67 after gaining Rs38.33 in its value.
During Monday’s trade, the rupee was hammered by the US dollar and settledat all-time low at Rs269.63, depreciating by a staggering Rs7.03 and losingits value by 2.61% in a single day.
Since last week, the value of local unit has been declined as a result ofthe decision pertaining to the removal of the dollar cap in the open marketon Wednesday.
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The Mattis Gobal quoted Fahad Rauf, the Head of Research at Ismail IqbalSecurities as saying: “The rupee continues to remain under pressure, asthere is a limited supply… Once the flows come in, the new market ratewould be set. ”
There is a little ray of hope for the forex-starved Pakistan which isfacing sovereign default, as the IMF is starting a technical discussionwith authorities on Tuesday (today), which would continue till Friday (Feb3) to finalise a memorandum of economic and financial policies (MEFP) forthe revival of its stalled tranche.
